Colorado Car Sales Practice Test 2026 - Free Car Sales Practice Questions and Study Guide

In a vehicle transaction, a buyer's agent is typically someone who represents the interests of the buyer, providing services such as assisting with negotiations, helping to obtain financing, and potentially even charging a fee for their services. However, a crucial limitation is that the buyer's agent should not be employed by the dealer. When a buyer's agent is directly employed by a dealer, this creates a conflict of interest. The agent may be incentivized to prioritize the dealer's interests over those of the buyer, undermining the very purpose of having a buyer's agent in the first place.

When a buyer's agent operates independently from the dealer, they can negotiate terms that are more favorable for the buyer, ensure that the buyer's needs are being met, and offer an objective perspective throughout the purchasing process. This separation is essential for maintaining trust and integrity in the transaction. As a result, while the buyer's agent can certainly represent the buyer for a fee, assist in negotiations, and help with financing, being employed by the dealer would compromise their primary role of advocating for the buyer's best interests.